Better Business Bureau Warns Of Ongoing Government Grant Scam
February 4, 2021 at 10:22 p.m.
By Staff Report-
A Fort Wayne woman recently reported losing $800 to this scam after a friend from the woman’s church forwarded her a Facebook message with information for a $50,000 income-based government grant. Because the message was from a friend, she believed the information was legitimate and continued the conversation with the scammers and “applied” for the grant.
The woman was told to purchase $200 in eBay gift cards from a local Walgreens and provide the unique bar code as payment. She was then instructed to send another $100 iTunes gift card, and this continued until she had sent the scammers a total of $800 in gift cards, according to a news release from BBB.
She then received a congratulatory message requesting a photo of her driver’s license and verification of her home address to receive the grant. The message informed her that a check would be delivered by 2 p.m. the next day. The day came, but the grant never did.
A later message, supposedly from Homeland Security, said the FedEx truck carrying her grant had been stopped and she needed to send another $2,000 in order for it to be released. That’s when the woman called her pastor, who advised her to call police. The police told the woman she had been scammed.
“Any time you’re asked to pay for something with a gift card, that should be a red flag,” Marjorie Stephens, president and CEO of the BBB serving northern Indiana, said. “No legitimate company will ask for payment via gift cards.”
Other tips the BBB provides to recognize and avoid this government scam are:?
• Free money doesn’t come easy. Scammers would have you believe that government grants are there for the taking. In reality, obtaining a government grant is an involved process and one where the grant seeker pursues the funds, not the other way around.
• Do not pay any money for a “free” government grant. A legitimate government agency will not ask you to pay an advanced processing fee. The only official list of all U.S. federal grant-making agencies can be found at www.grants.gov.
• Check for lookalikes. A caller may say he is from the “Federal Grants Administration,” which does not exist. Be sure to do your research and see if an agency or organization is real.
• Be careful with unsolicited calls asking for your banking information. Scammers will cold call, asking basic questions to see if you qualify for a grant and then ask for your banking information saying they need to collect a one-time processing fee and directly deposit your money. Never provide this information to anyone who calls you.
If you spot a scam, whether you’ve lost money or not, report it to the BBB’s Scam Tracker at BBB.org/ScamTracker and the FTC at ReportFraud.ftc.gov. Your story can help other consumers avoid similar scams.
Latest News
E-Editions
A Fort Wayne woman recently reported losing $800 to this scam after a friend from the woman’s church forwarded her a Facebook message with information for a $50,000 income-based government grant. Because the message was from a friend, she believed the information was legitimate and continued the conversation with the scammers and “applied” for the grant.
The woman was told to purchase $200 in eBay gift cards from a local Walgreens and provide the unique bar code as payment. She was then instructed to send another $100 iTunes gift card, and this continued until she had sent the scammers a total of $800 in gift cards, according to a news release from BBB.
She then received a congratulatory message requesting a photo of her driver’s license and verification of her home address to receive the grant. The message informed her that a check would be delivered by 2 p.m. the next day. The day came, but the grant never did.
A later message, supposedly from Homeland Security, said the FedEx truck carrying her grant had been stopped and she needed to send another $2,000 in order for it to be released. That’s when the woman called her pastor, who advised her to call police. The police told the woman she had been scammed.
“Any time you’re asked to pay for something with a gift card, that should be a red flag,” Marjorie Stephens, president and CEO of the BBB serving northern Indiana, said. “No legitimate company will ask for payment via gift cards.”
Other tips the BBB provides to recognize and avoid this government scam are:?
• Free money doesn’t come easy. Scammers would have you believe that government grants are there for the taking. In reality, obtaining a government grant is an involved process and one where the grant seeker pursues the funds, not the other way around.
• Do not pay any money for a “free” government grant. A legitimate government agency will not ask you to pay an advanced processing fee. The only official list of all U.S. federal grant-making agencies can be found at www.grants.gov.
• Check for lookalikes. A caller may say he is from the “Federal Grants Administration,” which does not exist. Be sure to do your research and see if an agency or organization is real.
• Be careful with unsolicited calls asking for your banking information. Scammers will cold call, asking basic questions to see if you qualify for a grant and then ask for your banking information saying they need to collect a one-time processing fee and directly deposit your money. Never provide this information to anyone who calls you.
If you spot a scam, whether you’ve lost money or not, report it to the BBB’s Scam Tracker at BBB.org/ScamTracker and the FTC at ReportFraud.ftc.gov. Your story can help other consumers avoid similar scams.
Have a news tip? Email [email protected] or Call/Text 360-922-3092